Page 16 - LatAmOil Week 27 2022

LatAmOil NEWS IN BRIEF LatAmOil

our drilling capacity in Brazil and will further
enhance our understanding of Bacalhau North
through an ADR (Reservoir Data Acquisition)
well. The decision to bring in DS-17 demon-
strates our commitment to create value in Brazil,
where we have a long-term presence perspec-
tive,” says Veronica Rezende Coelho, country
manager in Brazil.
DS-17 is an ultra-deepwater drillship, capable
of operating in water depths of more than 3,600
metres.
Partners in Bacalhau: Equinor 40% (opera-
tor), ExxonMobil 40%, Petrogal Brasil 20% and
Pré-sal Petróleo SA (production sharing agree-
The Company estimates that, on completion, the choices that were made during the Pandemic ment manager, not an investor).
aggregate effect of the three sets of infrastructure creating a strong operational platform on which Equinor, July 5 2022
upgrades described above could, including the to build. Having stabilised the business, we are
up to 240 bpd of oil of liquids and up to 2 mcf per now able to pivot the asset towards the current TechnipFMC awarded
day of associated gas (net to Echo) that would be momentum in commodity prices. By signifi-
expected to be delivered from the well reopen- cantly increasing production we drive a virtuous integrated FEED contract
ing programme, result in up to an additional 600 circle of cash flow strengthening our financial
boepd of production net to the Company. position and providing additional potential for by Equinor for BM-C-33
With the agreement between the Santa Cruz future growth. This is underpinned by the strong
Sur partners as to the Enhancement Plan, the pipeline of identified opportunities within the project offshore Brazil
delivery of the intended operations is expected Santa Cruz Sur asset base. We look forward to
to require an estimated $2.1mn (gross to 100% working with our Partners on this and to fur- TechnipFMC has signed a Letter of Intent (LoI)
Santa Cruz Partnership) to deliver in full over ther update the market as our work programme with Equinor Energy do Brazil, a subsidiary of
the entire duration of the Enhancement Plan’s progresses.” Equinor, for an integrated Front-End Engineer-
implementation and, notwithstanding existing Echo Energy, July 7 2022 ing and Design (iFEED™) study on its BM-C-33
Santa Cruz Sur joint venture creditor balances project offshore Brazil.
of an estimated (unaudited) circa $13.9m ($9.7m Equinor extends drilling The study will finalise the technical solution
net to Echo’s 70% interest) as at April 30, 2022, for the proposed gas and condensate greenfield
the Santa Cruz Sur partners currently believe capacity in Brazil with development in the pre-salt Campos Basin
that a significant proportion of the cost of the before Equinor makes its final investment deci-
Enhancement Plan can be met from existing, Valaris DS-17 sion (FID).
and to be increased, Santa Cruz Sur cash flows. The FEED study includes an option to pro-
In advancing the Enhancement Plan, the On behalf of the Bacalhau licence partners, ceed with a direct award to TechnipFMC for
Santa Cruz Sur partners intend to engage with Equinor Brazil has awarded Valaris, repre- the integrated Engineering, Procurement, Con-
the local province in respect of a proposed exten- sented by Ensco UK Drilling and Ensco do Bra- struction and Installation (iEPCI™) phase of the
sion to the term of the Santa Cruz Sur licences. sil Petróleo e Gás, a 540-day drilling contract project.
This Enhancement Plan is the agreed next scheduled to start in 2023. The major iEPCI™ contract would cover the
step for production growth from Santa Cruz The Valaris DS-17 drillship has been tasked entire subsea system, including Subsea 2.0™ tree
Sur and is focused on low-risk infrastructure to drill an appraisal well, plug an old exploration systems, manifolds, jumpers, rigid risers and
upgrades to sustain the increased production well and conduct additional drilling scope in flowlines, umbilicals, pipeline end terminations,
from existing well stock. In addition, the Santa Brazil. and subsea distribution and topside control
Cruz Sur assets includes a portfolio of other “Brazil is one of Equinor’s core areas, and equipment. TechnipFMC would also be respon-
opportunities across the risk-reward spectrum Bacalhau is one of our flagship projects inter- sible for life-of-field services.
and additional cash flows which would be deliv- nationally. We are pleased to land an agreement Jonathan Landes, President, Subsea at Tech-
ered from the implementation of the Enhance- with the Valaris, on deliveries from an advanced nipFMC, commented: “We are excited about
ment Plan will broaden the scope for portfolio drillship for this important field. We look for- this iFEED™ award, which demonstrates our
choices in bringing additional existing reserves ward to working with one of the world’s largest collaborative relationship with Equinor and
and resources into production. rig contractors and we have high expectations their continued confidence in our technolo-
The Company looks forward to continuing to to their deliveries on safety and efficiency,” says gies and integrated approach. This integrated
update shareholders on progress on these plans Geir Tungesvik, executive vice president for Pro- project will be the first time Equinor uses our
throughout this year. jects, Drilling and Procurement. Subsea 2.0™ configure-to-order production sys-
Martin Hull, CEO of Echo, commented: “Fol- Drilling services and other additional ser- tems, of which we’re seeing increased customer
lowing a strong H1-2022 of production, we are vices such as remotely operated vehicle (ROV), adoption.”
pleased to announce an important and material managed pressure drilling (MPD), casing run- For TechnipFMC, a “major” contract is over
step in the Company’s strategy to deliver organic ning, slop treatment and cuttings handling are $1.0bn. Order inbound for the iEPCI™ phase of
growth from the Santa Cruz Sur assets. The abil- included in the contract. A fuel reduction incen- the project remains subject to FID and contract
ity to now materially increase production lev- tive has also been agreed on. approval.
els from Santa Cruz Sur is a result of the right “The second rig in Bacalhau will expand TechnipFMC, July 5 2022

P16 www. NEWSBASE .com Week 26 30•June•2022